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Stimulus Package Tax Credit Part 2
Written by Carter Scott & Thad Wise, Bank of America   
Thursday, 26 February 2009 00:00
You may have read our post "Stimulus Package Tax Credit Part 1" to learn about the new tax credits for homebuyers.  We've added information about energy efficiency tax credits and housing assistance programs addressed in the new Stimulus Package. 

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.  Here are a few helpful links: Federal Tax Credits for Energy Efficiency, Treasury and IRS Provide Guidance for Energy Credits for Homeowners.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization.  According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing — This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.  Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance — This provision increases support for several critical housing programs.  It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.  According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments.  At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.  While this is good news for individual homeowners, it will likely be good for the housing industry as a whole.